GOVERNMENT HEALTH EXPENDITURE AND ECONOMIC GROWTH IN NIGERIA

ABSTRACT

 The importance of government expenditure on health cannot be overemphasized in the economy. This study aim at determining the impact of government expenditure on health and economic growth in Nigeria within the period of 1981 to 2014. Specifically, we conducted the stationarity test using Augmented Dickey Fuller (AD) unit roots test, co-integration test and error correction model and ordinary least square technique with the aid of eviews 8.0 RGDP and LEXP were stationary at levels, EEXP was stationary at first difference while HEXP was stationary at second difference. The findings indicate that health expenditure impact negatively on economic growth while expenditure on education and life expectancy were fund to be positively related to economic growth in Nigeria. An increase in government spending on health infrastructures and other health problems will reduce the pace of development in Nigeria.